#USA #Lifeway Foods #Morton Grove #Kefir #Probiotic Products

Lifeway Foods Achieves Record Sales in Q2 2025

Lifeway Foods, Inc. (Nasdaq: LWAY), a key player in the kefir and fermented probiotic food industry, has reported impressive financial results for the second quarter of 2025. The company achieved net sales of $53.9 million, marking an 18% increase in volume on a comparable basis. This milestone is also significant as it represents nearly six years of continuous growth in net sales for Lifeway.

Lifeway's President and CEO, Julie Smolyansky, expressed pride in the company’s performance, stating that the results solidify their position as the dominant leader in the kefir category. The net sales recorded are the highest in the company's history, reflecting strong volume-driven growth. The CEO highlighted that even as they navigate previous highs, the brand's strength and customer loyalty have remained steadfast.

In addition to increasing sales, Lifeway has also improved its gross profit margin significantly, expanding by 160 basis points year-over-year and more than 460 basis points sequentially. This financial health translates into double-digit growth in net income and diluted earnings per share (EPS) year-over-year. Lifeway’s growth is buoyed by a heightened consumer demand for nutritious foods, particularly from the wellness boom and the rising use of GLP-1 medications, leading to an increased interest in protein-rich and probiotic-rich options that enhance digestion and satiety.

Accolades and Recognition

In an industry accolade, Lifeway was named Processor of the Year by Dairy Foods magazine, a prestigious recognition that underscores the company’s innovative contributions and leadership within the dairy sector. This award attests to the hard work and dedication of the Lifeway team and highlights the company's long-standing role in bringing kefir to the U.S. market over the last four decades.

Capitalizing on Trends

Besides its core kefir and Farmer Cheese products, Lifeway has also introduced Probiotic Smoothies with Collagen, a pioneering product in the market that has struck a chord with consumers. The collagen industry is booming, projected at $8 billion globally, and is lauded for its health benefits related to skin, joints, and hair. Lifeway's unique combination of probiotics and collagen promotes both gut health and beauty from within. The Berry Blast flavor of these smoothies was awarded the prestigious 2025 Good Housekeeping Snack Award, reflecting the positive reception from consumers.

Third Quarter Momentum

As Lifeway looks to the future, the momentum continues. In July alone, the company recorded its best-ever week of gross sales, exceeding $5.5 million and representing a significant 66% increase compared to the same week in 2024. The unaudited estimated net sales for the third quarter to date, through August 11, 2025, have reached $26.4 million, exceeding year-over-year figures by more than 20%.

Q2 2025 Highlights

• - Net Sales: $53.9 million, representing the highest in company's history, up 9.7% year-over-year.
• - Gross Profit Margin: Increased to 28.6%, compared to 27.0% in the prior year.
• - Marketing Investments: Selling, general and administrative expenses remained stable at 17.6% of net sales, underscoring continued investments in marketing and distribution.
• - Net Income: $4.2 million, or $0.28 per share, an increase from $3.8 million or $0.26 per share year-on-year.

Outlook

Lifeway Foods has reaffirmed its ambitious long-term goal of achieving $45–$50 million in Adjusted EBITDA by the end of FY 2027. The CEO remains optimistic about the company’s trajectory, asserting that Lifeway is poised for ongoing growth driven by record sales, expanding profit margins, cutting-edge innovation, and a scalable production platform. She concluded with a confident statement, “The best is yet to come.”

For those interested in further details, a conference call and webcast have been arranged where the President and CEO will discuss these results comprehensively, available on Lifeway's investor relations page.

About Lifeway Foods

Lifeway Foods is recognized as one of America’s leading suppliers of kefir and other fermented probiotic products. Their diverse range of drinkable kefir and various cheese products are widely distributed not just in the U.S., but also in countries like Mexico, Ireland, South Africa, the United Arab Emirates, and France. More information about Lifeway, and how its products benefit consumers, can be found at lifewayfoods.com.